Should You Hire a GM or Get Strategic Support First?

by Sean Foster | October 23, 2025  | Business Coaching

As your business grows, the day-to-day pulls increase, and so does the pressure to delegate. At some point, you may find yourself wondering: Should I hire a General Manager (GM) to take things off my plate? Or do I need strategic support to get clear first?

This isn’t just a hiring decision. It’s a leadership and business direction decision. And getting it wrong can cost you more than just money.

What Hiring a GM Promises

According to Harvard Business Review, an effective General Manager does far more than oversee operations. They shape strategy, structure, resource allocation, and team development. But that only works when the right foundations are already in place.

Hiring a GM sounds like a relief. Someone to run the operations, manage the team, and free you up for "big picture" thinking. And when it works, it can transform your capacity and your business.

But many owners hire a GM too early, too vaguely, or with unclear expectations. McKinsey research found that only one-quarter of organisations make effective delegated decisions, because the surrounding systems and empowerment aren’t there. The result? A GM who either:

• Becomes another high-salary employee asking the owner what to do
• Tries to lead without enough context or alignment
• Leaves when expectations clash or clarity is missing

Hint: Recently I met someone who is working in a company. The business owner employed a General Manager 2 years ago, to help with growing the business. Two years later the revenue in this company has grown by $3million. Growth is now flat. This correlates to the exact amount of new business that this GM has personally introduced in new clients. I.e they are really just an expensive BDM (Business Development Manager), not a GM. All decisions and initiatives are implemented by the existing business owner who is too blind to see that they are the bottle neck and staller of business improvement. Sound familiar?

Strategic Support Helps You Decide, Not Just Delegate

Before you hire a GM, ask yourself: What am I really trying to solve here?

If you’re burnt out, stuck in the weeds, or frustrated with your team’s performance, a GM might seem like the answer. But those issues are often symptoms of deeper challenges, like unclear roles, weak accountability systems, or lack of strategic direction.

McKinsey also highlights that over-involved leaders and poor delegation not only slow progress but undermine capability-building in their teams. Strategic support helps you:

• Clarify what your business actually needs (vs what feels urgent)
• Strengthen team systems before handing them over
• Build a structure that a GM can succeed within
• Decide if a GM is the right move, or if another step comes first

In our article Can a Business Coach Help with Staff Issues and Team Dynamics?, we explore how strategic coaching can address the leadership blind spots that often get in the way of confident delegation.

Real‑World Lessons from GM Hires and Scale‑Up Failures

Real-world examples highlight how the decision to hire a GM, done too early or without the right foundation, can backfire. Training Magazine reports that 40% of high-potential leaders promoted into general management roles ultimately fail, often due to unclear expectations, poor fit, or lack of systems to support their leadership.

Meanwhile, in Harvard Business Review’s article on scaling mid-sized businesses, successful companies had one thing in common: they built strategic clarity and structured leadership before handing over operational control. This allowed their General Managers to slot into an already functioning system, instead of trying to fix one from within.

These insights reinforce the value of slowing down before hiring, asking sharper questions, and ensuring your business can actually support a GM before expecting one to save the day.

Questions to Ask Before Hiring a GM

Before making the leap to hire a General Manager, it's important to ask yourself a few key questions to ensure your business is truly ready:

1. Do I have clear KPIs and ownership lines for every role?
2. Is my business strategy defined enough to hand over?
3. What’s the root cause of my current overwhelm: systems, people, or clarity?
4. Do I want to stay involved in certain areas, or step away completely?
5. Will a GM inherit a structured operation or chaos?

If these questions feel hard to answer confidently, strategic support might be your better first step before hiring a GM.

What Happens If You Hire Before You’re Ready

Bringing in a GM without clarity can create more confusion:

• Staff may become uncertain about who to follow
• You may feel pressure to back away too quickly
• The GM may operate in a vacuum or override the culture

These are avoidable, not by avoiding growth, but by preparing for it with intent.

One way to ensure your GM is set up for success is by understanding your team's strengths, blind spots, and fit for future leadership. In our article Why Use Psychometric Assessments In Your Business, we explore how tools like DISC and CliftonStrengths can support smarter hiring and clearer team dynamics. These assessments can help you make more informed decisions about who to hire, how to delegate, and what kind of leadership your business actually needs.

When a GM Makes Sense

A General Manager is a great fit when:

• You’ve defined roles, systems, and strategic priorities. In fact, McKinsey’s research shows that strong middle managers, those operating between strategy and delivery, directly contribute to better financial outcomes.
• You’re ready to empower someone else to lead key areas
• You want to stay out of the day-to-day and focus elsewhere

That doesn’t mean everything needs to be perfect. But you do need a clear foundation to support someone stepping into such a pivotal role.

In Leadership Executive Coaching Tools That Every NZ Business Owner Should Use, we outline how to build that foundation, from team alignment tools to clarity frameworks that set leaders (and future GMs) up for success.

Book a Free Clarity Call

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Frequently Asked Questions

How do I know if I need a GM or strategic coaching?
If you’re lacking clarity, struggling to delegate, or unsure about your team’s structure, strategic support can help you stabilise before hiring a GM.

What’s the biggest mistake businesses make when hiring a GM?
Hiring without clear expectations or systems in place. This can lead to costly misalignment and poor team dynamics.

Can a coach help me prepare to hire a GM?
Absolutely. A coach can help map your team structure, clarify roles, and ensure you're ready to support a GM effectively.

What happens if I hire a GM too soon?
You risk adding overhead without clarity, frustrating staff, and potentially creating more confusion than clarity.